The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is a mega-regional agreement signed in March 2018 between 11 signatory states: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Viet Nam.
The agreement is designed to facilitate trade between its members by reducing tariff and non-tariff trade barriers (NTBs), providing market-access commitments for goods and services trade, promoting investment and labour mobility, facilitating government procurement, and strengthening economic relations with the signatory states. After its full implementation, the CPTPP will ultimately eliminate 99% of the tariff lines among its members.
The CPTPP (11):
- Comprises of 520 million people, approximately 6.5% of the world's population (World Bank, 2023)
- Accounts for 11.3% of global GDP, approximately US$11.8 trillion (World Bank, 2023)
The CPTPP is considered progressive as it aims to do more than just reduce business costs. The CPTPP includes commitments to:
- Protect labor and environmental standards
The CPTPP includes commitments to high labor and environmental standards across the Asia-Pacific region.
- Create a fair business environment
The CPTPP establishes clear rules to create a transparent, consistent, and fair business environment.
- Support small and medium-sized enterprises
The CPTPP includes technical cooperation chapters to support small and medium-sized enterprises.
- Promote economic empowerment
The CPTPP aims to support trade outcomes that promote economic empowerment for women and Indigenous peoples.